State Board Approves $7M Sale of Olympia Fields Hospital to Prime Healthcare

Prime pledges to sustain and improve the struggling safety net hospital despite concerns over changes at other Illinois facilities.

Apr. 14, 2026 at 6:37pm

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A photorealistic studio still life featuring a polished metal stethoscope, a glass beaker, and a stack of medical files arranged elegantly on a clean, monochromatic grey background, symbolizing the business and medical aspects of the hospital sale.A sale that aims to sustain a vital healthcare access point, but raises concerns over the new owner's track record.Chicago Today

The Illinois Health Facilities and Services Review Board voted unanimously to approve the sale of Franciscan Health Olympia Fields hospital to Prime Healthcare for nearly $7 million. Prime, a California-based for-profit system, plans to invest in the 214-bed hospital that has been running in the red for years, with the goal of reducing inefficiencies and bringing in needed services for the community.

Why it matters

The sale of the struggling Olympia Fields hospital to Prime Healthcare comes amid concerns over the company's actions at other Illinois hospitals it has acquired, including suspending certain services. The board's approval highlights the challenges of saving distressed hospitals and the tradeoffs communities face in maintaining access to care.

The details

Prime leaders told the board they specialize in saving struggling hospitals by reducing overhead and bringing in needed services. They pledged to invest $250 million in their Illinois hospitals when they purchased them last year. However, Prime has faced criticism for suspending inpatient pediatric care at one hospital and losing a trauma center designation at another. The board questioned if Prime planned similar changes at Olympia Fields, but Prime said there are 'tremendous opportunities' to sustain and grow programs, especially in behavioral health.

  • The Illinois Health Facilities and Services Review Board voted on the sale on Tuesday, April 14, 2026.
  • Prime Healthcare purchased several Illinois hospitals from Ascension last year.

The players

Prime Healthcare

A California-based, for-profit health system with more than 50 hospitals across the country, including eight in Illinois that it acquired from Ascension last year.

Franciscan Health Olympia Fields

The 214-bed hospital that has been running in the red for years, losing over $47 million in 2024 alone.

Illinois Health Facilities and Services Review Board

The state board that unanimously approved the sale of the Olympia Fields hospital to Prime Healthcare.

Debra Savage

The chairwoman of the Illinois Health Facilities and Services Review Board who questioned Prime's actions at other Illinois hospitals it has acquired.

Lludid Maxinez

A nurse who spoke in favor of the deal, praising Prime's investment in her hospital, St. Francis Hospital in Evanston.

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What they’re saying

“'At its core, this transaction is about saving and improving Olympia Fields hospital, ensuring its continued role as a vital access point for the south suburbs of Chicago'”

— Dr. Sunny Bhatia, President and Chief Medical Officer of Prime Healthcare

“'I know Olympia Fields hospital is in financial distress, and I understand what is at stake if we do not get this right. … Prime is the only system able to not only save but improve the hospital'”

— Dr. Sunil Patel, Chief Medical Officer at Prime's St. Joseph Medical Center in Joliet

“'We know that coming in to save and invest in distressed hospitals is a challenging business, but I'm impressed. You really do seem to be fulfilling the promises that you made to us back in 2024.'”

— David Fox, Board Member

“'Things are different now that Prime Healthcare is at the helm and none of this would be possible without their support and dedication to our staff'”

— Lludid Maxinez, Nurse

What’s next

Prime and Blue Cross and Blue Shield of Illinois have a contract dispute that must be resolved by June 1. If they cannot reach an agreement, Prime's hospitals will be out-of-network for Blue Cross and Blue Shield of Illinois patients.

The takeaway

The sale of the struggling Olympia Fields hospital to Prime Healthcare highlights the difficult tradeoffs communities face in maintaining access to care, as Prime has faced criticism for service changes at other Illinois hospitals it has acquired. The board's approval signals their belief that Prime can turn the hospital around, but ongoing monitoring will be crucial.